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Retirement: Five Essential Points With A Little Commentary Thumbnail

Retirement: Five Essential Points With A Little Commentary

With this blog I want to discuss 5 essential points to consider for your retirement with very little commentary. We will keep this one short and directly to the point.

Retirement Has Two Doors

Door number one and door number two. In retirement there are only two possible financial outcomes. Door number one, your money outlives you. Behind that door lies dignity, independence, and legacies. Door number two, you outlive your money. Behind that door lies dependence on family or the state, death of any legacy, poverty and destitution. Everyone that retires will get one outcome or the other. Your choice.

The Only Difference Between The Two Outcomes Is A Plan

"if you aim at nothing, you will hit it everytime." Zig Ziglar. Failing to plan is planning to fail. With a plan you have a chance for door number one. Without a plan you are almost guaranteed door number two.

The Real Risk

We were raised to think that the real risk in retirement was losing your principal. However, in a 30 year retirement, the real risk is outliving your purchasing power. Money not invested will be swallowed whole by inflation.

Fixed Income and Rising Living Costs Equal Door Number Two 

Real safety in retirement is an income that rises more than your living costs do. Bonds don't do that nor were they designed to do that. The constantly rising dividends and capital values of America's best companies do that and have historically done that for 100 years. It's counterintuitive but factually true.

You Need A Plan

If you're still in the accumulation phase (pre-retirement) we can help you figure out where you need to go and how to get there. If you are retired or nearing retirement, we can plan an income which will outpace inflation and possibly leave a legacy to your family. The consultation is free and without obligation.

For more articles about retirement planning and investing click here.

Thanks for reading!

Brian Coleman/Retirement Planner/Investment Manager

80/20 Financial Services is an independent Registered Investment Advisory Firm. Our focus is working with retirees, and we specialize in working with retirees who are approaching or going through the retirement transition. We are located in Ozark, MO but we have the ability to work with clients throughout the United States. Contact us today for help with your retirement needs.

Photo by James Balensiefen on Unsplash